1. Using a Bank or Credit Union consumer.gov

2. Why use a bank? A bank is a place to keep your money safe A bank’s services include: – checking accounts and savings accounts – debit cards and credit cards – loans – check cashing and money transfers Check cashing and money transfers might cost less at a bank than at other places if you have an account

3. What is a credit union? Offers the same services as a bank You have to be part of a group that is allowed to join For example, if you: – live in a particular community – are a member of a place of worship – are an employee at a certain company

4. What is a checking account? A place to keep money safe until you need to spend it Often called a “bank account”

5. Why would you have a checking account? To: – keep your money safe – be able to pay with a debit card or check – be able to get cash from an ATM – pay bills online – get access to loans, depending on your credit history – cash pay checks or wire money

6. What is a savings account? An account for money you want to save – It keeps money you want to save separate from money you might spend in your checking account

7. Why would you open a savings account? You might use a savings account to: – save money for emergencies or goals – keep your money safe – keep some money separate from the money you spend every month

8. How do you choose a bank or credit union? Before you open an account: – compare the services and fees at a few banks or credit unions. Go to their websites or visit in person – find out what kind of checking and savings accounts are offered – ask what fees you will pay for each account

9. What fees should you ask about? A bank or credit union might charge you for: – having a checking account – using a debit card – getting cash from another bank’s ATMs – having less than the minimum balance in your account – spending more money than you have in your account You might avoid some fees if you ask your employer to have your paycheck deposited directly into your account

10. What if you get a debit card? A debit card is a way to pay for things A debit card is connected to your account You get a debit card from your bank or credit union when you open a checking account

11. How does a debit card work? A debit card: – takes money from your checking account – lets you get cash at an ATM or “cash back” at a store – does not increase your debt A debit card has “a pin number” you need to enter to buy things or get cash at an ATM

12. How are debit cards and credit cards different? When you use a credit card: – you are borrowing money to spend now – you get a bill to pay later – you pay extra money in interest if you don’t pay your whole bill off every month When you use a debit card: – you are using money you already have – you will not get a bill

13. Can you use a debit card to shop online? You can, but it is not the safest choice Credit cards are a safer choice for buying things online

14. What if you run out of money? If you don’t have enough money in your checking account: – your debit card will be rejected – or, with “overdraft protection,” you might pay a high fee

15. How can you avoid running out of money? Write down what you spend or take out of your account – subtract what you take out from the money still in the account – that is how much money you have left – remember to subtract any fees

16. Choosing a Bank or Credit Union consumer.gov